|Legal Name:||Safaricom PLC|
|Headquarters Regions:||Westlands, Kenya|
|Founders:||Michael Joseph (2000) |
Parent Organization – Telkom Kenya
|Number of Employees:||6,500+ (2021)|
|Products of Company:||Telecommunication and Mobile Money Transfer|
|Net Worth in 2021||$10 Billion|
Safaricom is the leading telecommunication provider in Kenya whose slogan is ‘Simple, Transparent & Honest: For You’. The slogan came after a rebranding which has seen a change in its slogan from ‘The Better Option’ to ‘Twaweza’ and then to ‘Simple, Transparent & Honest: For You.’
It is known to be one of the successful companies within the East and Central Africa region through which it has been profitable with huge margins compared to most of its competitors. In addition to this, it has had much success through its huge customer base, whereby almost every Kenyan is a subscriber of the Safaricom network.
The popularity of Safaricom came hugely through its invention of mobile money transfer through the so-called M-Pesa. This invention brought a great transformation into the Mobile Money Transfer methods not only to the Kenyan Market but also implemented in the global market.
It has control of more than 70% of the Kenyan market, with which it had a subscriber base of more than 36 million as of the year 2021. Keep reading this article as we know more about the
The initial launching of Safaricom operations was in the year 1993, through which it commenced as a department of Kenya Posts & Telecommunications Corporation. During this time, it was based on the ETACS network analog, which later got its upgrade in the year 1996.
Safaricom got its incorporation as a private limited liability company in April 1997, whereby it was a fully-owned Telkom Kenya subsidiary. 40% of its stake was acquired by Vodafone Group PLC of the UK in 2000. Later, in 2008, it got 25% of its shares being listed in the Nairobi Securities Exchange (NSE), which gave it much strength to run its operations following an increase in its shareholding.
Currently, it has its headquarters located in Safaricom House, Westlands in Nairobi, Kenya. The current CEO of Safaricom is Peter Ndegwa, who got appointed to be the CEO starting 1st April 2020. Michael Joseph was the founding CEO of Safaricom PLC, through which he served in the same position from July 2000 to November 2010. During his tenure, he led Safaricom into a big milestone through which he commenced with a subscriber base of less than 20,000 and grew it to a base of more than 17 Million. During his last tenure, Safaricom had a profit before tax of 37% increase.
After the retirement of Michael Joseph, Bob Collymore then took over the position in November 2010. During this tenure, Bob saw the company grow into several mobile products. Collymore, however, succumbed to cancer on 1st July 2019, whereby he left the company with an increase of its profits by more than 380% and double of its subscriber base. Following this, Michael Joseph was then re-appointed to act as the Interim CEO for the company.
Safaricom has evolved and grown since its commencement in the market. Having started as a department of the Kenya Posts and Telecommunication Corporation in 1993, Safaricom got its incorporation in the year 1997, through which it became a private limited company. During this time, 40% of its ownership was held by Vodafone Kenya Limited. Later in the year 2002, it became a public company through which 60% of its shares got held by the government, whereby 25% of these shares got auctioned off in Nairobi Securities Exchange in 2008.
Safaricom launched M-Pesa in the year 2007, which was their best successful product being a mobile money transfer service. Though this product was made to enhance ease in microfinance-loan repayments, it got further use which was deemed to be very important through which Safaricom subscribers would send and receive soft money via their phone. Its use got diversified after the piloting of the product, through which it became a general money-transfer product.
Safaricom grew its customer base through which it recorded 6.2 Million registered users in 2009. During this period, it had a customer base of 13.4 Million, 51 PayBill partners, 8,650 Retail Outlets, and 301 3G-enabled base stations situated in Mombasa, Nairobi, Eldoret, and Naivasha.
During this period, Safaricom got much success, especially due to the M-Pesa product that got introduced. As a matter of fact, it was awarded the Best Mobile Money Service on the GSMA Global Mobile Awards. This award was among the 10 global private companies awards on the contribution of the millennium goals.
The M-Pesa, Money transfer platform, has grown over the years through which it has evolved in offering several e-payment solutions such as Banking and Lending Products such as M-Shwari and KCB M-Pesa, Lipan an M-Pesa, and other global money transfer methods such as PayPal and Western Union.
The company is also taking the lead in the enhancement of the Kenya’s digital revolution through the provision of reliable and affordable internet both through their Mobile Internet and Safaricom Home Fibre Optic. Their optic fiber coverage has increased, with it having covered more than 200,000 homes currently.
Following the growth and expansion of Safaricom PLC, it has seen growth both in its customer base influencing an increase in its employees to manage the huge traffic. Currently, Safaricom has more than 6,500 employees, with other statistics indicating that it has more than 165,300 active M-Pesa agents, 410+ dealers, and 1,165 business partners.
Awards and Achievements
Safaricom has got many awards following its amazing performance in the market. Being a leading company in the telecommunication industry, it has attracted many investors and much popularity leading it to be one of the most awarded companies.
One of the most valuable awards they received was on the Outstanding Contribution to the Mobile Industry Award following the M-Pesa money transfer platform shaping the global mobile money industry.
Net Worth of Safaricom in 2023
Safaricom has an estimated net worth of $10 Billion. In 2020, it was ranked as the 10th out of the top 250 companies in Africa. During this point, Safaricom had a market capitalization of $9.96 Billion and a net income of $598 Million, which depicts its net worth. In the first quarter of the year 2021, Safaricom posted a net profit of $607 Million, equivalent to Kshs 69.67 Billion.
Safaricom has been the leading company in Kenya and one of the best-performing companies in Africa. It has had much success following its customer-centric strategy, which has made it outdo its major competitors such as Telkom Kenya and Airtel Kenya. Furthermore, one of its most strengths comes from the M-Pesa money transfer platform that has transformed the money transfer industry. Furthermore, Safaricom has gone an extra mile in developing more other products which have always remained competitive in the market.